Etsy, Inc. (ETSY) is a Specialty Retail company in the Consumer Cyclical sector, currently trading at $55.99. It has a SharesGrow Score of 62/100, indicating a above average investment profile with 3 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of ETSY = $66.46 (+18.7% from the current price, the stock appears undervalued). Analyst consensus target is ETSY = $67 (+19.5% upside).
Valuation: ETSY trades at a trailing Price-to-Earnings (P/E) of 32.1 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 2.24.
Financials: revenue is $2.9B, +4%/yr average growth. Net income is $163M, growing at +32.2%/yr. Net profit margin is 5.7% (thin). Gross margin is 71.6% (+0.6 pp trend).
Balance sheet: total debt is $742M with negative equity of -$1.1B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.44 (adequate). Debt-to-assets is 26.3%. Total assets: $2.8B.
Analyst outlook: 21 / 45 analysts rate ETSY as buy (47%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 49/100 (Partial), Growth 73/100 (Pass), Past 75/100 (Partial), Health 75/100 (Pass), Moat 70/100 (Pass), Future 46/100 (Partial), Income 45/100 (Partial).
